Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

15	PROPERTY, PLANT AND EQUIPMENT


	Buildings Million			Telecommunications transceivers, switching centers, transmission and other network equipment Million			Office equipment, furniture, fixtures and others Million			Total Million
Cost:
As of January 1, 2019		155,451			1,548,851			25,301			1,729,603
Transferred from construction in progress		6,251			159,098			2,165			167,514
Other additions		539			1,235			911			2,685
Disposals		—			(28	)		(19	)		(47	)
Written-off		(822	)		(100,962	)		(2,450	)		(104,234	)
Exchange differences		71			161			9			241

As of December 31, 2019		161,490			1,608,355			25,917			1,795,762

As of January 1, 2020		161,490			1,608,355			25,917			1,795,762
Reclassification		(2,092	)		12,387			(10,295	)		—
Transferred from construction in progress		5,339			164,378			3,032			172,749
Other additions		163			1,935			982			3,080
Disposals		(5	)		(63	)		(81	)		(149	)
Written-off		(337	)		(45,260	)		(1,733	)		(47,330	)
Exchange differences		(189	)		(444	)		(20	)		(653	)

As of December 31, 2020		164,369			1,741,288			17,802			1,923,459

Accumulated depreciation and impairment:
As of January 1, 2019		52,158			994,803			16,146			1,063,107
Charge for the year		5,983			150,243			1,817			158,043
Written back on disposals		—			(13	)		(14	)		(27	)
Written-off		(33	)		(99,027	)		(1,192	)		(100,252	)
Exchange differences		9			49			1			59

As of December 31, 2019		58,117			1,046,055			16,758			1,120,930

As of January 1, 2020		58,117			1,046,055			16,758			1,120,930
Reclassification		(1,333	)		6,600			(5,267	)		—
Charge for the year		6,073			133,912			2,897			142,882
Written back on disposals		(2	)		(27	)		(59	)		(88	)
Written-off		(292	)		(43,643	)		(1,654	)		(45,589	)
Exchange differences		(43	)		(173	)		(7	)		(223	)

As of December 31, 2020		62,520			1,142,724			12,668			1,217,912

Net book value:
As of December 31, 2020		101,849			598,564			5,134			705,547

As of December 31, 2019		103,373			562,300			9,159			674,832

With the consideration that the Group’s 4G and 5G networks are expected to

co-exist

for a long time and the technologies in relation to its 4G wireless assets (mainly comprising base station main equipment, base station extension equipment and antenna feed lines) are relatively stable and have not experienced any major upgrade since investment was made in such assets, the Group reassessed the actual status of use of its 4G wireless assets and as a result, adjusted the depreciable life of the 4G wireless assets from 5 years to 7 years with effect from January 1, 2020. The aforesaid changes in accounting estimates have been made using the prospective application method. The depreciation and amortization for the year ended December 31, 2020 decreased by approximately RMB19,685 million as a result of the aforesaid changes in accounting estimates.

In order to better reflect the

classification

of the assets, the Group adjusted the categorization of the property, plant, and equipment during the year ended December 31, 2020, which does not affect the estimated useful life and the depreciation of the relevant assets.